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Hedge funder Kyle Bass released a presentation slamming a Texas company he claims is a 'Ponzi-like real estate scheme'

Julia La RocheFeb 5, 2016, 21:21 IST

Reuters/ Brendan McDermid

Texan hedge fund manager J. Kyle Bass has revealed that he's the anonymous short seller that's been going after United Development Funding IV, a Texas-based real-estate-investment trust (REIT).

Bass, who runs the Dallas-based Hayman Capital, launched a website on Friday accusing the company of operating a "Ponzi-like real estate scheme" that targets mom and pop retail investors.

Back in December, Bass used the pseudonym "Investor For Truth" to publish reports on an investing website called Harvest Exchange slamming the company. Since then, the stock has collapsed more than 40%. The share price was last down more than 11% trading around $9 on Friday.

Bass has posted a number of reports on his website, including a slide deck of his short thesis.

The company responded to the allegations in December in a securities filing with the SEC, claiming the hedge fund is unlawfully manipulating the price of UDF IV.